Web resources for managing credit

April 29, 2010

We might have avoided some of the trouble of the financial meltdown if more of us had properly managed our credit. Here are sites that provide guidance on doing just that:

Paying back: The how-to guides at Yahoo.com include this crash course in managing debt and credit. The main point is to keep from getting deep into debt by using credit cards to spend more than you earn. The article explains the difference between installment debt and revolving credit, with additional warnings on the potential high cost of spreading repayment of revolving credit over years.

tinyurl.com/lnb5l3

It adds up: Designed for teaching teenagers how to manage money, It All Adds Up offers "games" many adults would benefit from playing to learn how to mind their credit and do responsible financial planning. The "Buying a Car" game, for example, has you picking a car with careful consideration of needs and budget matters. A teaching guide also suggests making it real with use of the Kelley Blue Book and Consumer Reports Online sites.

italladdsup.org

Free credit report: Yes, you are entitled to free credit reports annually from Experian, Equifax and TransUnion. But, to avoid getting hoodwinked into signing up for some service that will cost you, make your requests through the site set up by the reporting agencies.

annualcreditreport.com

Reading that report: The Federal Trade Commission explains what's up with credit reports, how to read them and why it recommends the above site.

ftc.gov/freereports

Sixty-second guide: The Motley Fool has posted this "60-second guide to managing your credit." The Fools recommend, in one seven-second message, that your total debts should not exceed 15 percent of your after-tax income. A good piece of advice here is to simply ask your lender for easier terms.